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Korea - Samsung denies deep discounts on MP3 players |
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Monday, 02 May 2005 |
Samsung
denies deep discounts on MP3 players
Korea Herald (subscription) - Seoul,South
Korea
Samsung Electronics Corp. yesterday denied charges that it is
strategically slashing prices of its MP3 players in overseas markets in pursuit
of global market share.
A Yonhap news report said Samsung cut prices of its Yepp portable music players
as much as by half in Japan, citing the case of YP-C1, a model which sells
exclusively online.
The report said that YP-C1 carried a price tag of about 84,250 won in Japan for
512 MB and 121,200 won for 1GB, compared to their local prices set at 199,000
won and 259,000 won, respectively.
An unnamed industry insider, quoted by Yonhap, suggested that Samsung may be
using low-cost approach targeted against mid-tier companies. The insider
excluded Apple Computer Inc., the global leader in MP3 player market.
"Apple is a major client of Samsung's memory products," the insider said.
"Samsung appears to be targeting mid-tier companies."
He also asserted Samsung was helping Apple by offering semiconductors at
discount.
Samsung strongly denied the report, arguing prices can겝t be same in every market
due to difference in tax and logistics structures, as well as after-service and
average consumer prices.
An official, who declined to be identified, said the lower prices in Japan were
a one-time only event, timed with the "golden week," one of the Asian country's
three busiest holiday seasons. "It is customary for electronics companies to
offer huge discounts during the holiday season."
The official said Samsung will raise the prices to 104,160 won and 161,080 won,
respectively, once the special sales season is over. He explained the still
remaining 30 to 40 percent gap in price was due to a difference in options.
"The music players sold in Japan and here are not exactly the same," the
official said. "Players sold in Japan are up to 7,000 yen (about 70,000 won)
cheaper because of difference in features, including the FM tuner and sound
quality control," he said.
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Last Updated ( Monday, 02 May 2005 )
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